Blackwood Man Admits To Insurance Fraud

CAMDEN—A Blackwood man is awaiting sentencing after pleading guilty to insurance fraud in excess of $300,000 through a scheme in which he claimed to be a physical therapist, according to New Jersey Attorney General Paula T. Dow.

The state will recommend a five-year prison sentence for John R. Lundy, 49, Dow said. 

Lundy, who pleaded guilty Monday, will also be ordered to pay $133,760.10 in restitution, and may face civil insurance fraud fines.

The crime occurred between 1998 and 2002.

Lundy fraudulently represented to patients and insurance companies that he was a licensed physical therapist. Most of the illegal insurance claims were for people who had sustained injuries in car crashes.

Lundy submitted insurance claims of more than $300,000 over the roughly five-year time frame, authorities said.

Several insurance companies received and made payments on these claims, including Liberty Mutual, Allstate, State Farm and First Trenton Indemnity Co., according to authorities.

Lundy was indicted by a Camden County grand jury in November 2006, but failed to appear for his trial in December 2007. He remained a fugitive until his arrest in September.

The state Office of the Insurance Fraud Prosecutor began investigating Lundy after receiving a request to investigate from NJM Insurance Group, Dow said.

Superior Court Judge Louise D. Donaldson, who took Lundy's guilty plea Monday, scheduled sentencing for March 4.